The net result of Suffolk Downs ownership putting up the state’s required $400,000 non-refundable fee last week in order to submit the track’s official letter of intent with the state Gambling Commission has been to excite dramatic interest in the possibility of a new hotel locating near to the track on the former Shaw’s property.
Negotiations have been underway for three months on the property which has been vacant since Shaw’s shut its doors last year.
Should a hotel decide to locate on that property it would mark a significant economic development of the first order for this city and will show those who watch such things that a casino at Suffolk Downs is going to have a corollary effect on investments made nearby.
A hotel on the former Shaw’s site would represent an investment of anywhere from $25-$50 million.
The go ahead given and a building permit purchased could run into $500,000 to $1 million for such an investment.
Then would come the room tax paid to the city when the hotel opens.
The bonus here is that if a hotel comes to exist on this spot near to Suffolk Downs, it would most likely survive quite nicely even if a casino fails to get approved at the track.
This once again shows that location above all is important to developers when they plan to make a large stake in a community like ours.
Development Director John Festa is remaining closed mouth about this hotel possibility but has not been quiet about what it will mean if it should come to pass.
Also, Festa has said the letter of intent filed by Suffolk Downs now allows the track to speak with state officials about traffic mitigation and other important aspects of the mitigation agreement to be struck with Revere as a host city when all is said and done.
Last week’s filing for a letter of intent was a big, big move by the track.
Forward momentum is important in a long process such as this one.
Forward momentum has been achieved.